RE:RE:Cost Oversuns re: ZZZZZZZZZZZZZZI agree that nationalization is not very likely as it doesn't make much sense. Yet, rationality and common sense are sorely missing in politics these days. The reason I bring it up is an attempt to explain why the TRQ SP is so low. There is no trust in the GOM.
After the Rights Offering TRQ will be trading at almost half of Book Value. As to earnings and Phase 2 the co. will be cash flow positive going forward at current commodity prices. Those buying TRQ with the rights this next week will have an average cost of about $3.30 after exercising which is a big discount. We will have a co. with virtually no debt, an operating mine, and in excellent position to take on the long term debt of expansion. Where would the SP be without the uncertainty created by the GOM?
The fact that we're even talking about earnings should have everyone excited except for some reason the GOM. RIO wouldn't go forward with the expansion unless there were big profits involved relative to their many other projects. They also wouldn't be ponying up another over $1B in what is basically a debt for equity swap in TRQ and OT. The biggest Black Friday sale today happens to be in TRQ. IMO